Say that you (or your parents) are purchasing a new car for $22,358. The sales tax is 6.45%, the down payment is 10% of the total cost, and you have a poor credit score. What is the lowest amount of interest you could pay at the end of the first month?
Secured Unsecured
Credit APR (%) APR (%)
Excellent 4.75 5.50
Good 5.00 5.90
Average 5.85 6.75
Fair 6.40 7.25
Poor 7.50 8.40
$22,358 * ( 1.0645) = 23,800 = total cost
23800 * 0.9 = 21420 = amount of loan
21420 * (.0750/12) = 133.88 = interest first month